Goldman suit closer

Goldman Sachs faces a multimillion-dollar class action that alleges the bank misled investors when it sold complex option contracts to wealthy clients in 2007.

The claim, which was flagged last May but has yet to be filed in court by plaintiff law firm Slater & Gordon, will allege that the investors found themselves contractually obliged to buy securities at above-market prices during the financial crisis.

Slater & Gordon has received funding from Litigation Lending Services to investigate and run the claim, which involves “buy below the market" contracts, also marketed by the bank as the Accumulator financial product, which is no longer being offered.

“We have been approached by a number of sophisticated investors who have suffered as a result of this particular product,"
Slater & Gordon
senior lawyer Van Moulis said. “Preparation for the class action is well advanced."